Current stamp duty rules mean that the first £250,000 of any London property purchase will be exempt from stamp duty.

To determine how much stamp duty you will pay on a property, use HMRC’s online stamp duty calculator.

To understand more about how stamp duty is calculated for different buying scenarios, here are some examples:

Is stamp duty different for London properties?

The simple answer is no. Currently, only buyers purchasing a property for, or below the value of £250,000 are exempt from stamp duty. Any property purchased for a higher amount will be eligible for stamp duty land tax (SDLT), regardless of whether it is in London or not.

Exactly how much stamp duty is owed, is calculated from a tiered pricing structure which is based on the total property price. 

Property value / SDLT

Up to £250,000 - Zero

The next £625,000 (the value between £250,001 to £925,000) - 5%

The next £575,000 (the value between £925,001 to £1.5 million) - 10%

The remaining amount (the value above £1.5 million) - 12%

I’m moving house, what stamp duty rules apply?

Stamp duty tiers for those replacing a primary residence from 23/09/2022 are as follows:

Property value / SDLT

Up to £250,000 - Zero

The next £675,000 (the value between £250,001 to £925,000) - 5%

The next £575,000 (the value between £925,001 to £1.5 million) - 10%

The remaining amount (the value above £1.5 million) - 12%

How much stamp duty will I pay if I am a first time buyer?

If you’re buying your first home

You can claim a discount if the property you buy is your first home. This means you’ll pay:

ZERO SDLT up to £425,000

5% SDLT on the portion from £425,001 to £625,000

You’re eligible if you or anyone else you’re buying with are first-time buyers.

If the price is over £625,000, you cannot claim the relief. You then follow the rules for people who’ve bought a home before.

I’m looking to invest in a London property, but what stamp duty charges will I incur?

The additional homes 3% levy that was introduced in April 2016 means that second homeowners or buy-to-let landlords don’t benefit from a complete exemption on the first £250,000. Second homeowners and buy-to-let landlord stamp duty rates are as follows:

Property value / SDLT

Up to £250,000 - 3%

The next £675,000 (the value between £250,001 to £925,000) - 8%

The next £575,000 (the value between £925,001 to £1.5 million) - 13%

The remaining amount (the value between £1.5 million) - 15%

If you are confused by stamp duty then Skyline Mortgage Consultants are here to help make purchasing a property in London, simple.